Before applying for a cannabis retail license, entrepreneurs must ensure they find legal commercial real estate for their shop and develop a comprehensive facility plan, as poor real estate decisions are the number one profit-killing mistake for new cannabis businesses, according to Be Green Legal. Make sure you get your dispensary property and location right!
Here are eight vital tips for finding a profitable (and legal) dispensary property:
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- Establish a clear budget for the property investment and overall business operations before contacting a cannabis realtor. These budgets will determine your facility’s needs and narrow the search. Bring business partners and investors to discuss operational and financial goals, scalability, staffing, and marketing tactics.
Know your tax rates
- Research regional sales taxes during the budgeting process as they will impact your launch and expansion strategy. Be aware of the sales tax rates in your target location and consider securing an accountant who can maximize your tax refund through creative, legal means if you are operating in a high-tax market.
Know your local proximity requirements
- Familiarize yourself with the local and state proximity requirements for cannabis retail stores, such as distance restrictions from schools, treatment facilities, and other designated areas. Consider consulting with real estate firms or cannabis consultants that can provide information on zoning, distance requirements, and license caps to ensure your chosen property is eligible for licensure.
Be smart about canna tourism & travelers
- Consider the potential for canna tourism in your chosen location and how it may impact your profit projections. Research the demographics and tourism trends in the area, and explore opportunities for strategic partnerships or events that can drive revenue for your dispensary.
Don’t make the neighbors mad
- Building a positive relationship with the local community can save you money and potential delays. Befriend and educate potential neighbors about your dispensary plans and address any concerns they may have. Consider conducting a traffic impact study if necessary to address any community concerns.
Consider the competition dispensary property
- Research the local competition and their marketing strategies, product offerings, and customer loyalty programs. Differentiate your dispensary by offering unique products or improving upon your competitors’ offerings. Also, research the number of licenses already in use in the region and consider shopping for used, licensed real estate to learn from previous failed business models.
Get your layout right
- Consider the layout and flow of your dispensary property to ensure efficient product intake, storage, and customer throughput. A well-designed dispensary layout can enhance the customer experience and boost sales. Ensure to include a security plan, as most states require in your facility plan.
- In addition to the above tips, consider incorporating sustainability into your dispensary’s operations and facility plan. This can include using energy-efficient lighting, implementing recycling and waste reduction measures, and sourcing eco-friendly packaging for your products. A commitment to sustainability can benefit the environment and appeal to environmentally-conscious customers, potentially driving more business to your dispensary.
Bonus Tip – Space Constraints
- Maximizing space within a cannabis dispensary’s properties or retail locations is crucial for efficiency. Integrating a cannabis vending machine offers a convenient and space-saving solution. These compact machines provide a seamless self-service option, allowing customers to browse and purchase a wide range of products quickly and discreetly. With intuitive interfaces, secure verification systems, and 24/7 accessibility (if regs allow), vending machines enhance the customer experience and maximize revenue potential. By partnering with ACE and complying with local regulations, dispensaries can showcase their commitment to convenience and position themselves for future growth in the competitive cannabis industry. Contact us today!